List Of Construction Companies In Beijing (China)

The average home price in China tripled between 2003 and mid-2008, but cooled in the second half of 2008 due to economic uncertainties brought by the global financial crisis. Then on November 9, 2008, China announced a 4 trillion yuan ($586 billion) stimulus package, which stirred another housing boom and accompanying surge in debt that peaked in 2013, before the government initiated a series of measures to cool the property market.

In 2009, expecting Beijing’s home prices to keep climbing, Zeng bought a two-bedroom apartment in Beijing’s Shuangjing neighborhood for 1.8 million yuan ($280,000). He sold the two-bedder for 4.05 million yuan ($620,000) last year and was able to buy the school-district apartment in cash.

Home prices in other Chinese top cities have skyrocketed in the past year. Shenzhen topped the table with a 52.7 percent leap, the fastest annual pace of price growth since 2011. Shanghai jumped 21.4 percent, while Beijing had an 11.3 percent rise, China’s official Xinhua News Agency reported.

Analysts also believed that capital flowing out of China’s equity market is fueling property investment. With Chinese stocks locked in a bear market and bond yields hovering near all-time lows, investors’ savings have no where to go except into real estate.

The PBOC has cut benchmark lending rates five times since 2015, to the current level of 4.35 percent. Meanwhile, the reserve requirement ratio (RRR), which sets the proportion of deposits that banks must hold in cash, has been lowered six times, with the latest 0.5-percent adjustment coming in on February 29, taking the RRR to 17 percent.

According to Xinhua, the Chinese government is studying policies to cool some of the over-heating markets, in order to “ensure the prices are in a reasonable range.”

Analysts predict more city-differentiated policies are on the way – more loosening in third- and fourth-tier cities to shrink inventories, and stricter policies in first-tier cities to cap surging prices.

Bloomberg reported on Friday that the surge in Shanghai’s property prices prompted authorities to meet to discuss policies to douse the city’s red-hot sales environment.